Ares Management CorpARES
Ares Management Corp Goodwill & Intangibles Disclosure
4. GOODWILL AND INTANGIBLE ASSETS
Intangible Assets, Net
The following table summarizes the carrying value, net of accumulated amortization, of the Company’s intangible assets:
| Weighted Average Amortization Period (in years) as of December 31, 2025 | As of December 31, | ||||||||||||||||
| 2025 | 2024 | ||||||||||||||||
| Management contracts | 4.7 | $ | 1,023,893 | $ | 590,675 | ||||||||||||
| Client relationships | 6.8 | 317,920 | 210,720 | ||||||||||||||
| Other | 0.0 | — | 500 | ||||||||||||||
| Finite-lived intangible assets | 1,341,813 | 801,895 | |||||||||||||||
| Foreign currency translation | 6,884 | (789) | |||||||||||||||
| Total finite-lived intangible assets | 1,348,697 | 801,106 | |||||||||||||||
| Less: accumulated amortization | (550,267) | (393,078) | |||||||||||||||
| Finite-lived intangible assets, net | 798,430 | 408,028 | |||||||||||||||
| Management contracts | 1,317,400 | 567,800 | |||||||||||||||
| Indefinite-lived management contracts | 1,317,400 | 567,800 | |||||||||||||||
| Intangible assets, net | $ | 2,115,830 | $ | 975,828 | |||||||||||||
During the year ended December 31, 2025, the Company recorded a non-cash impairment charge of $2.3 million to the fair value of management contracts of certain CLOs within the Credit Group. The primary indicator of impairment was the lower than expected future fee revenue resulting from the earlier than expected end to the useful lives of these CLOs. During the year ended December 31, 2024, the Company recorded a non-cash impairment charge of $8.9 million to the fair value of management contracts of certain funds within the Credit Group, Real Assets Group and Secondaries Group. The primary indicator of impairment was the lower than expected future fee revenue generated from these funds. During the year ended December 31, 2023, the Company recorded a of $78.7 million primarily related to the value of client relationships from the acquisition of Landmark Partners, LLC (the “Landmark Acquisition”). The primary indicator of impairment was the lower than expected fee paying assets under management in a private equity secondaries fund from existing investors as of the date of the Landmark Acquisition.
Amortization expense associated with intangible assets, excluding the accelerated amortization described above, was $193.4 million, $116.3 million and $126.0 million for the years ended December 31, 2025, 2024 and 2023, respectively, and has been presented within general, administrative and other expenses within in the Consolidated Statements of Operations. During the year ended December 31, 2025, the Company removed $40.6 million of fully-amortized cost basis of intangible assets.
As of December 31, 2025, future annual amortization of finite-lived intangible assets for the years 2026 through 2030 and thereafter is estimated to be:
| Year | Amortization | ||||
| 2026 | $ | 184,898 | |||
| 2027 | 174,251 | ||||
| 2028 | 143,234 | ||||
| 2029 | 112,952 | ||||
| 2030 | 70,396 | ||||
| Thereafter | 112,699 | ||||
| Total | $ | 798,430 | |||
Goodwill
The following table summarizes the carrying value of the Company’s goodwill:
| Credit Group | Real Assets Group | Secondaries Group | Private Equity Group | Total | |||||||||||||||||||||||||
Balance as of December 31, 2023 | $ | 256,679 | $ | 277,205 | $ | 417,630 | $ | 172,462 | $ | 1,123,976 | |||||||||||||||||||
| Acquisitions | — | 35,091 | — | 4,605 | 39,696 | ||||||||||||||||||||||||
| Reallocation | 55,658 | — | — | (55,658) | — | ||||||||||||||||||||||||
| Foreign currency translation | (305) | (727) | (3) | (1) | (1,036) | ||||||||||||||||||||||||
| Balance as of December 31, 2024 | 312,032 | 311,569 | 417,627 | 121,408 | 1,162,636 | ||||||||||||||||||||||||
| Acquisitions | — | 2,285,242 | — | — | 2,285,242 | ||||||||||||||||||||||||
| Foreign currency translation | 1,798 | 4,418 | 13 | — | 6,229 | ||||||||||||||||||||||||
| Balance as of December 31, 2025 | $ | 313,830 | $ | 2,601,229 | $ | 417,640 | $ | 121,408 | $ | 3,454,107 | |||||||||||||||||||
In connection with the acquisition of the equity interests in Walton Street Capital Mexico S. de R.L. de C.V. and certain of its affiliates in the fourth quarter of 2024, the Company allocated $28.4 million of the purchase price to goodwill.
In the first quarter of 2024, the Company changed its segment composition. The special opportunities strategy, historically part of the Private Equity Group, was renamed to opportunistic credit and integrated into the Credit Group. In connection with this segment reorganization, the Company had an associated change in its reporting units and reallocated goodwill of $55.7 million from the Private Equity Group to the Credit Group using a relative fair value allocation approach.
There was no impairment of goodwill recorded during the years ended December 31, 2025 and 2024. The impact of foreign currency translation adjustments is reflected within the Consolidated Statements of Comprehensive Income.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Feb 26, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Feb 27, 2017 | |
| 2015 | Feb 29, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.